By | John Oates 3rd May 2006 08:56

EDS results on track

Services giant on course...

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EDS posted improved profits for the first quarter ended 31 March 2006, but just missed Wall Street predictions.

The services giant made $24m profit in the three months, compared to $4m in the first quarter of 2005. Analysts were expecting closer to $30m. EDS brought in revenues of $5.08bn, up 10 per cent on the same quarter last year.

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The company signed $10bn in contracts in the period compared to $6.9bn in the same period a year ago.

Big contract renewals included $3.6bn with General Motors and $3.9bn with the US Navy.

Revenues in the US grew three per cent in the period to $2.3bn, and profits were up to $306m, a 10 per cent increase. In EMEA revenue grew 16 per cent to $1.6bn thanks mainly to the UK Ministry of Defence. EDS is providing a new communications network "DII".

Asia-Pacific brought in $303m, up eight per cent. US government projects, including the troubled NMCI project for the Marines, brought in $840m, a 28 per cent increase.

For the year, EDS is keeping up with previous guidance - it expects to bring in between $20bn and $20.05bn.